Checkpoint Software (CHKP) PT, Estimates Trimmed at Needham & Company; 'Buy' Maintained

Needham & Company analyst Scott Zeller trimmed estimates and his price target on Checkpoint Software (NASDAQ: CHKP) to $95.00 (from $100.00) but maintained a Buy following June qtr results.

Zeller commetned, "We are maintaining our BUY rating on Check Point, although we are trimming our estimates and lowering our price target from $100 to $95. The JuneQ was a narrow beat on revenue and EPS vs. consensus, and a bit below Needham estimates. The combination of three factors has led CHKP to lower its CY16 outlook: (a) revenue recognition of bundled appliances (b) an increase in maintenance discounting among competitors, and (c) we believe softening macro spend on IT security is impacting CHKP and its peers. That said, we believe the billings strength +7% y/y and deferred growth of +14% y/y show fundamentals remain solid. We continue to favor CHKP in the security market as a value name, in an environment where fast-growth security darlings face valuation pressure. Maintain BUY, trimming estimates, lowering target from $100 to $95."

For an analyst ratings summary and ratings history on Checkpoint Software click here. For more ratings news on Checkpoint Software click here.

Shares of Checkpoint Software closed at $83.64 yesterday.

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